Understanding umbrella insurance coverage
Umbrella insurance is a type of personal liability coverage that goes beyond the limits of other existing policies such as homeowners, auto, or business insurance. It is designed to protect individuals or companies and their assets from the financial consequences of unforeseen events such as lawsuits or accidents. Those who are at high risk of being sued, that have significant assets, inexperienced drivers, or anyone concerned that their coverage limits are not sufficient may benefit from umbrella insurance.
Umbrella insurance provides coverage for losses that exceed the limits of other policies. For example, umbrella insurance can provide additional protection if the policyholder is involved in a car accident. If the policyholder damages another person’s vehicle or the other person requires medical treatment, the umbrella policy would cover the amounts that exceed the limit of their auto insurance policy. It’s important to note that Umbrella Insurance does not cover the policyholder’s own injury or property damage, nor does it provide protection against criminal activity or intentional injury.
The benefits of getting umbrella insurance include financial protection and peace of mind. In the event that you or your company are found liable for an accident, umbrella insurance protects an individual from losing assets to cover damages or attorney fees if there is a lawsuit. Additionally, umbrella insurance can cover situations that other policies may not cover, such as personal liability situations. Purchasing umbrella insurance will ensure that you are fully protected when the unexpected happens. Umbrella insurance can be purchased as an add-on policy, or as a standalone policy (that may even be with a different carrier than your main policy).
Situations where umbrella insurance coverage is necessary
Umbrella insurance is vitally important in situations where you may face personal injury claims. These claims may arise from accidents that occur on your property, such as slip and fall accidents, or accidents that occur outside your property, such as dog bites. Umbrella insurance can help protect you or your business from the potentially disastrous financial consequences of such unforeseen accidents.
Umbrella insurance is also very beneficial in situations where a person may face property damage claims. These claims can arise from events such as: a tree falling on a neighbor’s property or a fire that spreads and damages their property. Umbrella insurance can help cover the costs of such claims, which may exceed the coverage of your standard policy. Additionally, umbrella insurance can provide protection for accidents that occur at rental properties and can cover personal injury claims due to libel and slander. And as mentioned above, umbrella insurance for your auto policy can be very beneficial to protect you from property damage and bodily injury liabilities.
For commercial umbrella insurance, it may be beneficial to get coverage if you’re in a high-risk business where injuries are common, or if you have multiple company vehicles.
How to obtain umbrella insurance coverage
Before purchasing umbrella insurance, it is important to determine your insurance needs. Talk with a knowledgeable insurance agent, such as our agents at A and H Insurance. They can offer guidance on what limits you will likely require, what insurance carrier to choose, or determine if it’s even a good idea to get umbrella insurance. A and H is an independent insurance agency, and we can check with multiple carriers to see who is offering the best coverage and rates. We primarily insure individuals and businesses in Nevada, California, and Arizona, but are licensed in over 20 states.
Getting $1 million or more in coverage from an umbrella policy can be relatively inexpensive. Costs may vary by insurance company and the type and amount of coverage required. However, the cost of umbrella insurance is much lower than the potential financial consequences of having insufficient coverage when you’re liable for a property damage or personal injury claim.
